401(k) Rollover to IRA | Ed Slott and Company, LLC

401(k) Rollover to IRA

Hello, if you were still working and able to defer your RMD's past 70 1/2 but in the middle of the current year you rollover your 401(k) to an IRA. Do you still have to pay RMD's for the year you rolled it over even if you still work?

Thanks,

Matt

No, the IRA RMDs on this balance will start in the following year. There is no 401k RMD unless you retire before the end of the year. Retirement in the same year as an earlier rollover that year will result in that year becoming an RMD Distribution year for the 401k and to the extent of that RMD, an excess IRA contribution will have been created due to rollover of RMD funds. In other words, you may want to be sure you are not retiring before the end of the year in which you do these in service rollovers.

 

Find members of Ed Slott's Elite IRA Advisor GroupSM in your area.
We neither keep nor share your information entered on this form.
 

I agree to the terms and services:

You may review the terms and conditions here.